Last updated on: February 05, 2015 11:47 IST
Private
entities are now exempt from the requirement of obtaining prior consent
of at least 80 per cent of the affected families.
The road towards DOOMS DAY...
The National Democratic Alliance (NDA) government's land ordinance
has done away with consent and social impact assessment for acquisition
of land by the private sector for a vast array of projects, in addition
to exemption from these for projects operating through public-private
partnerships (PPPs).
Projects that fit into one of the broad categories mentioned in the
ordinance and owned by private entities will neither require consent
from the affected families nor need to undertake social impact
assessment when acquiring land, as is the case with their equivalents in
PPP mode or by a government agency.
Since the ordinance was issued, many commentaries and reportage has
missed the point that the government has provided an exception to the
United Progressive Alliance government's 2013 land acquisition law not
only for public sector and PPP projects, but also for a vast array of
private projects.
The 2013 law had two critical provisions:
One required that the acquiring entity secure the consent of the affected families. In case the land was being acquired by a private company, the consent
of 80 per cent of people was required. In the case of PPP projects,
this was set at 70 per cent. But the land ordinance of December 30, 2014, introduced a caveat to
the 2013 law, stating, "Provided also that the acquisition of land, for
projects listed in section 10A and the purposes specified therein, shall
be exempted from the provisions of the first proviso to this
sub-section." The first proviso refers to the need for consent in the
2013 law. By inserting this provision, the ordinance effectively provided carte blanche to the private sector.
Private entities are now exempt from the requirement of obtaining prior consent of at least 80 per cent of the affected families though the ordinance does not explicitly state so. An assessment by PRS Legislative Research, a think tank that reviews legislative and other government processes, affirmed consent was no longer required for private projects.Senior officials involved in drafting the ordinance also confirmed this to Business Standard.
Private entities are now exempt from the requirement of obtaining prior consent of at least 80 per cent of the affected families though the ordinance does not explicitly state so. An assessment by PRS Legislative Research, a think tank that reviews legislative and other government processes, affirmed consent was no longer required for private projects.Senior officials involved in drafting the ordinance also confirmed this to Business Standard.
The land ordinance has similarly provided an exception to the private
sector when it comes to undertaking social impact assessments. The list of projects that have been exempted from requiring consent
and the need to carry out social impact assessment range across those
vital to national security or defence, rural infrastructure or
electrification, affordable housing, industrial corridors, and
infrastructure and social infrastructure projects. The last two categories comprise an exhaustive list of industries
that include hospitals, ports, special economic zones, tourism
facilities, cold chains, fertiliser factories, ports, roads, airports
and urban public transport.
Farmers of India now cannot open their mouths when Modi's Government will grab their land citing the ORDINANCE...
But the decision to do away with the social impact assessment for all
projects under these categories is likely to create further ambiguity
on the issue of rehabilitation and resettlement.
Officials in the government admitted without any provision for social
impact assessment, the rehabilitation and resettlement of the people
affected by land acquisition would be largely left to the district and
state administration. The social impact assessment was meant to identify the people and
their assets impacted by the acquisition of land. Based on this
assessment, they were to be provided not only compensation but also
packages for rehabilitation and resettlement.
The assessment was to be carried out by an independent party, not the district administration and project developer. This would have been shared with the public before seeking consent for acquiring the land. While there were various views on the need for social impact assessments, the ordinance, by exempting the public and private sectors, has effectively turned the clock back.
The assessment was to be carried out by an independent party, not the district administration and project developer. This would have been shared with the public before seeking consent for acquiring the land. While there were various views on the need for social impact assessments, the ordinance, by exempting the public and private sectors, has effectively turned the clock back.
It has returned the power of discretion back into the hands of the
local administration, in line with the colonial-era land acquisition law
of 1897.
Dooms Day Begins...
After the Congress, the Aam Aadmi Party and the Left attacked the NDA
government for the land ordinance, Prime Minister Narendra Modi on
February 3 defended it. Speaking at a political rally in New Delhi, he said, "I want to tell
farmers only as much land will be acquired as is needed for your
welfare. Land will not be used for the rich." (The Biggest Lie by the Prime Minister of India)
Earlier, Congress leaders such as Jairam Ramesh and P Chidambaram had criticised the ordinance.
"The 2013 Act had three main pillars: - consent of landowners, social
impact assessment and compensation and relief and rehabilitation. Now,
for private and PPP projects, the first two pillars have been virtually
destroyed," Ramesh had told Business Standard.
"I dare say every significant case of land acquisition can be brought within one of the categories in section 10A and, thus, be spared social impact assessment. That is the terrible mischief wrought by the ordinance," Chidambaram had written.
"I dare say every significant case of land acquisition can be brought within one of the categories in section 10A and, thus, be spared social impact assessment. That is the terrible mischief wrought by the ordinance," Chidambaram had written.
The ordinance also corrected one of the legal loopholes created by
the 2013 law. The NDA substituted the words "private company" with
"private entity" to require that the Act, as well as its exemptions to
consent and social impact assessment, now be extended to all private
entities.
According to the Companies Act, 2013, a 'private company' means a company with a paid-up share capital of at least Rs 1 lakh. It excluded other entities such as proprietorships, partnerships, corporations and non-profit organisations.
According to the Companies Act, 2013, a 'private company' means a company with a paid-up share capital of at least Rs 1 lakh. It excluded other entities such as proprietorships, partnerships, corporations and non-profit organisations.
Now, all these forms of private enterprise will also be exempted from
social impact assessment and the consent clause if their projects fall
in the numerous categories of projects listed in the 2013 law and the
2014 amendment.
By: Ishan Bakshi & Nitin Sethi